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1 OFFICIAL GAZETTE of the COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA (COMESA) COMESA REGULATIONS CONCERNING THE TREATMENT OF PRODUCTS IN THE EDUCATION SECTOR IN THE HARMONISED CONSUMER PRICE INDICES (HCPI) Volume 17 No November 2012
2 THE COUNCIL OF MINISTERS OF THE COMMON MARKET OF EASTERN AND SOUTHERN AFRICA (COMESA) Having regard to Article 140 of the Treaty establishing COMESA through which Member States made an undertaking to cooperate in the field of statistics in order to create an enabling environment for up-to-date reliable, harmonized and comparable statistical data on various sectors of economic activity, through the harmonization and adoption of common methodologies concepts and definitions to be used in collecting and compiling statistics; Having regard to COMESA Regulation No [xx] of [date] concerning the establishment of harmonized consumer price indices (HCPIs) in Member States; Having regard to existing COMESA Member States Legislation on statistics and the confidentiality clauses therein; HEREBY ADOPTS THESE REGULATIONS: Article 1 Citation These Regulations shall be cited as the COMESA Regulations concerning the Treatment of Products in the Education Sector in the Harmonized Consumer Price Indices (HCPI). Article 2 Definitions In these Regulations, unless the context otherwise requires: COICOP means the international Classification of Individual Consumption according to Purpose; Council means the Council of Ministers of the Common Market established by Article 7 of the Treaty; Harmonized Consumer Price Indices (HCPI) the comparable consumer price indices compiled by each Member State; ISCED 1997 means International Standard Classification of Education; NPISHs means Non-Profit Institutional Saving Households; Member States means COMESA Member States Reimbursements means payments made to households by government units or non-profit institutions serving households (NPISHs) that are made as direct consequences of purchases of individually specified services, initially paid for by households; Secretariat means the COMESA Secretariat.
3 Article 3 Objective The objective of these Regulations is to set minimum standards for the HCPI treatment of goods and services in the education sector in conformity with COICOP Division 10, as set out in the Annex 2(i). Article 4 Types of expenditure 1. Member States shall classify expenditure on educational services in the appropriate subheading of COICOP Division Member States shall allocate expenditure on education-related goods, such as textbooks, and on education-related services, such as school catering or healthcare services, to the appropriate Division and sub-heading of COICOP as set out in the COMESA Regulations on Product Coverage. 3. Member States shall separate and allocate the components of a price to the COICOP divisions concerned where a price is charged for educational services combined with educational materials or education support services, provided that where such a separation cannot be made, the inclusive price shall be allocated to the most appropriate class in COICOP Division Member States shall assign pre-primary level institutions to social protection or education according to the standards set out in ISCED Article 5 Providers of educational services All fee-charging providers of educational services, including organs of central and local government, NPISHs, religious organisations, private institutions and companies, and private self-employed persons, shall be covered in the HCPI. Article 6 Coverage of educational services 1. Member States shall extend the initial coverage set out in Annex 1 of the Product Coverage Regulations in conformity with COICOP Division 10 and its sub-headings in accordance with Annex 1 of the Extended Product Coverage Regulations. 2. HCPIs which include price indices and weights for each of the categories referred to in paragraph 1 accounting for more than one part in a thousand of total expenditure covered by the HCPI shall be deemed comparable. 3. Member States shall compile HCPI sub-indices for the COICOP Division 10 and its sub-headings referred to in paragraph 1 where the weights
4 account for more than one part in a thousand of total expenditure covered by the HCPI. Article 7 Weights 2. Member States shall obtain prices of educational services from the fee-charging providers referred to in Article Where a service is provided to households: 1. Member States shall determine weights in accordance with total household expenditure on educational services as classified in COICOP Division 10, less reimbursements and shall be based on the following: (a) results of household expenditure surveys; (b) National Accounts data using the expenditure concept of private consumption; or (c) any other appropriate source. 2. Where fees for educational services are paid for partially or fully by means of a loan, the weights shall include the gross fees payable without regard to the amount of the loan, its repayment period or any interest chargeable. Article 8 Prices 1. The purchaser prices of educational services shall be the amounts payable by households net of any reimbursements. (a) (b) (c) free of charge and subsequently an actual price is charged, whether or not subsidised, the change from zero to the actual price shall be taken into account in the HCPI; at a fee and subsequently is provided free of charge the change from the actual price to zero shall be taken into account in the HCPI; and jointly with other services or goods free of charge, and is subsequently charged for on a separate basis, the change shall be taken into account in the HCPI.
5 Article 9 Calculation of HCPI for educational services Member States shall compute the HCPI for educational services based on the requirements of Articles 4 to 8. Article 10 Transmission of sub-indices to Secretariat 1. Member States shall compile sub-indices of the HCPI in accordance with Article 6 and transmit them monthly to the Secretariat. 2. Member States shall transmit to the Secretariat the corresponding weights and household final monetary consumption expenditures together with the first HCPIs relating to COICOP Division 10 and thereafter whenever the weights are changed. Article 11 Quality Control Member States shall provide to the Secretariat information sufficient to evaluate compliance with the procedures laid down in Articles 4 to 8. Article 12 Amendments 1. Any proposals for the amendment of these Regulations shall be submitted to the Secretary General in writing who shall, within 30 days of its receipt, communicate it to the Member States. 2. The Member States which wish to comment on the proposals shall do so within 90 days from the date of the dispatch of the proposals by the Secretary General. 3. After the expiration of the period prescribed under paragraph 2, the Secretary General shall submit the proposals and any comments thereon received from the Member States to Council through the Committee on Legal Affairs. 4. Any amendment to these Regulations shall be adopted by Council and shall enter into force upon publication in the Official Gazette of the Common Market. Article 13 Entry into force These Regulations shall enter into force on the date of publication in the Official Gazette of the Common Market. Done and adopted at the Thirty First Meeting of the COMESA Council of Ministers held at Kampala, Uganda on 21 November [Signature].. Chairperson COMESA Council of Ministers
6 Annex 2(i) CLASSIFICATION OF ITEMS IN COICOP DIVISION 10 AND OTHER EDUCATION- RELATED ITEMS COICOP GROUP CLASS Examples of specific types of service 10.1 Pre-primary and primary education (ISCED 0 & 1) Pre-primary and primary education Public pre-primary school fees (kindergarten, Montessori, nursery etc) Private pre-primary school fees (kindergarten, Montessori, nursery etc) Public primary school fees Private primary school fees 10.2 Secondary education (ISCED 2 & 3) Secondary Education Public secondary school fees Private secondary school fees 10.3 Post-secondary non-tertiary education (ISCED 4) Post-secondary non-tertiary education Fees for computer courses Fees for language courses Fees for professional Courses
7 10.4 Tertiary education (ISCED 5 & 6) Tertiary education Public University fees: Bachelor degree Private University fees: Bachelor degree Public University fees: Masters degree Private University fees: Masters degree Public University fees: Doctorate degree Private University fees: Doctorate degree 10.5 Education not definable by level Education not definable by level Adult literacy courses Correspondence courses Education by television or radio broadcasting Not included in COICOP Division 10 Examples include (COICOP heading in brackets): Fees for subsistence while at school or college (COICOP , ) Accommodation charges (COICOP ) Catering charges (COICOP ) Transport charges (COICOP 07.3) Charges for healthcare products (COICOP 06) Expenditure on educational materials, e.g. books, stationery (COICOP 09.5) Fees for driving lessons (COICOP ) Fees for out-of-school sports training (COICOP ) Cost of school uniforms and sports clothing (COICOP 03)
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